Sprint Announces Job Cuts

Sprint Corp. on Wednesday announced the telephone carrier would cut 2,100 jobs as part of a plan to consolidate functions and “maintain a competitive cost structure.”

The company is combining its IT, customer credit, billing and collect organizations under a single organization. Each of Sprint’s primary units – Local Telephone, Global Markets and PCS – had their own IT and billing organizations before today. As a result, Sprint said it plans to eliminate 1,000 jobs over the next year.

Sprint also announced plans to cut 1,100 jobs in other areas. Employees in Sprint’s Local Telecommunications Division (approximately 450 employees) Global Markets Group (300 employees) and Sprint’s Corporate Center (300 employees) will be affected, the company said.

Sprint disclosed it expects to save $145 million annually after the company fully implements the changes.

The company anticipates recording an $85 million pre-tax charge in the fourth quarter related to employee severance and other exit costs.

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